{"Term":"Controlled foreign company (CFC)","Definition":"\u003cp\u003eControlled foreign companies are based overseas but controlled by a small number of New Zealand residents. The company itself must not be a tax resident in New Zealand or must be treated as foreign under a double tax agreement.\u003c/p\u003e\n\u003cp\u003eMost commonly, \u0027control\u0027 means total ownership of the non resident company by a New Zealand resident. \u003c/p\u003e\n\u003cp\u003eHowever, control can also exist where:\u003c/p\u003e\n\u003cul\u003e\n    \u003cli\u003e5 or fewer New Zealand residents have a controlling interest of more than 50%\u003c/li\u003e\n    \u003cli\u003e5 or fewer New Zealand residents control the shareholder decision rights\u003c/li\u003e\n    \u003cli\u003ea single New Zealand resident has a controlling interest of 40% or more, and no non-associated non resident owns a larger controlling interest.\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003e\u003ca href=\"/income-tax/income-tax-for-businesses-and-organisations/income-tax-for-companies/controlled-foreign-companies\" class=\"quick-links-topic\"\u003eControlled foreign companies\u003c/a\u003e\u003c/p\u003e\n\u003cp\u003eDouble tax agreements (DTAs)\u003c/p\u003e","TeReoTerm":"","TeReoDefinition":""}